Methods and systems for location identifier based forwarding

A packet can be sent on a VLAN from a first machine that has a first address on the VLAN to a second machine that has a second address on the VLAN and that is located at a remote location associated with a remote location identifier. A network appliance can use the second address to determine the remote location identifier, can encapsulate the packet in a local segment packet that includes a local VNID and the remote location identifier; and can send the local segment packet to a local router. The local router can use the remote location identifier and the local VNID to determine a remote router and a remote VNID, can encapsulate the packet in an outer packet, which can be a VxLAN packet, that includes the remote VNID, and can send the outer packet to the remote router.